How Can NRI Invest in NPS ? – Recently RBI opens gate of National Pension System (NPS) for NRI’s. NPS is the now an investment option for non-resident Indians as well.
As per the Pension Fund Regulatory and Development Authority (PFRDA) guidelines NPS is a contributing pension plan up to age of 60 years with minimum contribution of Rs.6,000 in Tier I account where as there is no maximum limit.
There are various POP who will invest the amount on your behalf to various market-linked funds currently on offer—government securities fund, fixed-income instruments other than government securities fund and equity fund. It is also made mandatory that the maximum equity exposure should be 50% and only through the index funds.
After attaining age of 60 years you would be having option to redeemed the 60% of this money and buy an annuity product, it offers pension, with the rest.
In case of NPS withdrawal before the age of 60 years , you will have to use 80% of the accumulated corpus to buy an annuity. You may also be given choice for partial withdrawal up to 25% of the contributions after 10 years of being in the scheme for specific purposes.
While the Tier I account is basic, the Tier-II account works like a savings account to offer liquidity.
How to invest in NPS ?
After opening of account PFRDA card or PRAN card , permanent retirement account number will be handed over to you.
Charges :
NPS investment charges are 0.01% currently.
Read Also : How To Make Online Money Transfer To NPS Account ?
Tax Benefit
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